I think, bringing transparency in crypt does not hurt it anyway, and KYC definitely helps to track such frauds and recover if possible. More ever, if everyone is having KYC, then legal complication will be less for the exchange as well, because most of the time, the regulatory complains about Criminals misusing crypt.
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You're very right about this. Imagine a world where we all go about wearing mask and walking about in shroud. How easy will it be for criminals to get away with crime? The question is not for you, anyway. Cheers!